Business Processes, Information Systems and Controls
Accounting 200-Honors Section
School of Accountancy\
DePaul University
Fall 1999



Professor: Dr. Sandra Shelton
Office: 6021 DePaul Center
Office Hours: 12noon-1: 00 MW; 4:00-5:45 W or by Appointment
Phone: (312) 362-8098, Fax (312) 362-6208
Email: sshelton@wppost.depaul.edu

Required Texts:

Accounting, Information Technology and Business Solutions, Hollander, Denna, and Cherrington, 2nd edition, Irwin/McGraw-Hill, 1998.

Systems Understanding Aid, Arens and Ward, Armond Dalton Publishers, Inc.

Computerized Accounting Using Great Plains Dynamics, Arens and Ward, Armond Dalton Publishers, Inc. 1999

 Course Description:

This course provides an understanding of the major business processes and how those processes are supported by information systems and controls, including controls applicable to computerized systems. Emphasis is placed on the study and assessment of existing processes, systems and controls. Prerequisite: Accounting 102.

Course Objectives:

Students who successfully complete this course will be able to:

  • Describe, identify, understand and analyze the major business processes of organizations.
  • Identify the business and internal control risks of organizations and processes.
  • Analyze and document both manual and electronic transactions processing and support systems.
  • Describe and identify internal controls available to manage and mitigate business and controls risks in both manual and electronic systems.
  • Develop tests of controls.
  • Describe and understand the nature if various types of internal and external assurance services that may be provided by accountants.


    • Assignments:

    Your success in this course requires your careful attention to and use of the course outline and assignment sheet that accompanies this syllabus. The assigned chapters and readings must be read in advance of class. In class, we will be covering the principal points from your readings and clarifying questions that may have arisen in them. The questions at the end of each chapter of your text provide a review of the important content of the chapter. It is suggested that you develop answers to these questions as you review the content of the chapters.

    The assigned questions and cases should be prepared in advance of the class on which they are assigned. Preparation of the questions and cases consists of notes or an outline as to how you would answer them. They will serve as a basis for class discussion. Class participation is strongly encouraged.

    Team Project:

    The team project is the Mercedes-Benz U.S. International Case. This case was developed by the KPMG/University of Illinois Business Measurement Case Development and Research Program. The team approach was chosen to provide you the opportunity to work effectively in teams and benefit from the group process. The grade for each member of the team will be determined by the team’s report and the peer assessment of individual contribution to the project.

    Systems Understanding Aid:

    The objective of the Systems Understanding Aid (SUA) project is to help you learn basic documents, records, internal controls and their relation to the financial statements. Knowledge of financial accounting information flow will aid your understanding of business processes, information systems and controls. The project consists of an accounting and internal control system for a wholesaling business, Waren Distributing.

    Preparation of the SUA is basically an out of class exercise. This project is to be completed and handed in as an individual assignment, not in groups. The assignment schedule breaks the project into three separate assignments. The assignments are due within the first 5 minutes of the beginning of class on the scheduled dates.

    You are advised to begin the project immediately and complete it as quickly as your time permits. You are encouraged to bring the SUA to class and ask me questions pertaining to issues you have encountered in completing the assignment.

    Computerized Accounting Project:You will be using an accounting software package pertaining to SUA. Preparation of the computer project is basically an out of class exercise. The project should be completed and handed in as an individual assignment.

    Grading:
    Mid-term examination                         30%
    Final examination                                30%
    Systems Understanding Aid                 20%
    Computer Project-Waren Company     10%
    Team Project: Mercedes-Benz Case    10%
                                                                 100%

    Grading Scale:
    A = 93% and Above
    A- = 90% to 92%
    B+ = 87% to 89%
    B = 83% to 86%
    B- = 80% to 82%
    C+ = 77% to 79%
    C = 73% to 76%
    C- = 70% to 72%
    D+ = 67% to 69%
    D = 60% to 66%
    F = 59% and Below

    Other Policies:

    Assignments are to be handed in on the due dates. Examinations are to be taken when scheduled. Cases of academic dishonesty are viewed as a serious violation of professional ethics and will result in and F Grade.
     



    Course Outline and Assignments


     
    Date
    Topics
    Assignments
    9/8
    Introduction-Business Processes
     
    9/13

    9/15
    Introduction to Accounting, Information Technology, and Business Solutions (Chp 1)

    Group Discussion of Presenting Information to meet the needs of users of information
    Chapter 1

    Discussion Question #12

    Minicases 1 and 9 (Team Assignment)

    Supplemental Chapter A

    Noll, D. and J. Weygandt. "Business Reporting: What Comes Next? Journal of Accountancy, February 1997, 59-62.
    9/20

    9/22
    The Traditional Accounting Information System Architecture
    Chapter 3

    Discussion Questions 1, 6, &11 

    Supplemental Chapter B

    Begin the Systems Understanding Aid
    9/27

    9/29
    Modeling the Business Process
    Chapter 2

    Discussion Questions 1, 2, 5, & 8

    Minicase 1
    10/4

    10/6
    Business and Information Process Rules, Risks, and Controls
    Chapter 5

    Discussion Questions 1, 2, 4, 5, 8, 10, & 11

    Minicases 3, 7, 10
    10/11
    Midterm
     
    10/13
    General Analysis of Accounting System and Controls 
    Complete Systems Understanding Aid

    Chapter 3, problems 6-8
    10/18
    Sample Electronic Data Processing Controls 
    Supplemental Chapter D

    Minicases 1 and 2
    10/20

    10/25
    The Sales/Collection Business Process
    Chapter 6

    Discussion Questions 11, 12, 15, 18, 19

    Minicase 1
    10/27

    11/3
    The Acquisition/Payment Process
    Chapter 7

    Minicases 1, 2, 3, & 4
    11/8

    11/10

    11/15
    Business Solutions, Change, and the Solution Professional

    Identify types, capabilities, limitations & deliverables of assurance services
    Chapter 9

    Discussion Questions 2, 4, 10, 11, 12; Minicase 4

    Reading:

    Elliot, R. and D. M. Pallais. "Are You Reaching for New Assurance Services?" Journal of Accountancy, June 1997 47-51. Visit www.aicpa.org
     

    Systems Understanding Aid

    Objective:

    To help you learn about basic documents, accounting records and internal controls. The assignment provides an opportunity to observe accounting cycles. The knowledge and understanding of the manual system will serve as a foundation for topics to be discussed in the remainder of the course. It is suggested that journals, ledgers, documents and schedules be neatly prepared in pencil to facilitate corrections.

    SUA Assignment Schedule


     
    Assignment
    Instruction, Flowcharts, and Ledgers Book
    Due Date
    Hand In
    1
    You are following Option 2 on page 9.
      • Read introductory information, pages 3- 14, and scan 23-41.
      • Scan through all documents in the Temporary Documents File and remove Document No. 26.
      • Complete the five steps in the Preparation Section on page 3.
      • Carefully read Option 2 on page 9.
      • Complete the seven step process for recording a transaction on pages 9 and 10 for all transactions on the Transactions List (Document 26).
    9/29/99
      • Journals
      • All documents and records completed to date
      • Instructions, Flowcharts, and Ledgers Book
    2
    Complete all six of Waren’s Month End Procedures on pages 10 -11.
    10/6/99
      • Journals (finalized)
      • Bank reconciliation
      • Monthly Statement & Remittance Advice (Document 14)
    3
      • Complete all seven of Waren’s year end Procedures on pages 11 to 13
      • Do Wrapping Up on page 13
    10/20/99
      • Entire project, including all schedules
      • Instructions, Flowcharts, and Ledgers Book
      • All documents and records
    4
      • Great Plains Dynamics Computerized SUA
    11/10/99
     
     
     

    Important Points:

  • Make sure that the documents and reports are neatly prepared.
  • Make sure all general journal entries are correct. Refer to your accounting texts or the reference book with your packet if you are having trouble.
  • Make sure you carefully follow the flowcharts and put proper signatures/initials on the documents.
  • Write checks only when explicitly directed to do so. If you run out of checks or if there are any checks left after the packet is completed, you have not correctly completed the SUA.
    • Note:

    The authors suggested time for full completion of the manual portion of SUA is approximately 15-20 hours. Budget your time to allow for the completion of the project by the scheduled due dates. The penalty for unexcused late assignments is 50% of the maximum points.